Citibank: Launching Credit Card in Asia Pacific

Technologies have allowed the banking industry to expand . Cell phones are now able to monitor consumer expenditures effectively and have become a new banking tool within the generation. Many opportunities arise with technology increasing. The banking institutions must be able to determine what future technologies may arise in order to be able to capitalize on that market. Recognition is essential during this time period for CIBC as they must maintain the technology consumers demand. The Canadian Imperial Bank is placed extremely well with a significant and assured customer base from the level of the government and the public sector business. Many government parties will do business with

On Thursday, September 29, 2016, Costco switched their store credit cards from American Express to Visa. Approximately 11.2 million credit cards were transferred to visa cards. With the change in credit card carriers 1.1 million other customers applied for the credit card of which 730,000 new accounts had been activated. The switch between the two credit card bands didn’t go smoothly. The problems the incurred by the company are now behind them, and now Costco is benefiting by not paying as high of fees with Visa. By Friday, Costco’s share prices were up by four percent, and their quarterly earnings were higher than Wall Street predicted. Compared with last year, Costco is still down by five percent and is not doing as well as previous

Regarding this, Citigroup is going to emit the Costco branded cards and Visa is going to provide the payment network in the United States and Puerto Rico from April 1, 2016. This deal means that Costco customers will only be able to use Visa credit cards at its stores, as is currently true with American Express cards. Another good point of this deal is that this is going to save money for Costco, according to Adams John a writer of the American Banker Magazine, “As part of the deal struck by Costco, Visa and Citigroup, the warehouse store's acceptance cost will reportedly be around zero, compared to the 0.6% of each transaction that Costco paid American Express.” Which is very convenient for Costco as its own CEO Scharf affirms Visa's pact with Costco will benefit card issuers win new customers. In addition to this, the agreement between Costco, Visa and Citigroup which is a good co-branding because we can produce an important rise in sales, and at the same time a lot of those rose sales can flow to the bottom line if we are able to convey a customer in more often by having two well-known brands in a single

Problem Statement: Alpen, a Swiss bank, which was positioned in high earner segment, is contemplating international expansion for its credit card business in Romania market. Carle, Alpen’s country manager, was trying to pursue this plan if he could prove by analysis that within two years it will be able to generate €5 million of annual profit to the Consumer Bank segment. The Romanian consumer lacked experience in using credit cards which made it difficult for the bank to determine credit card limits and set interest rates which would attract

The Australia and New Zealand Banking Group Limited (ANZ) is the 3rd largest bank in Australia and the top 13 bank in the world based on the market capitalization in 2013 (the ANZ Annual report 2013; Banksdaily March 2013). The Global Finance Magazine (May 2013) awards the Australian Best Bank to ANZ Group in 2013. The ANZ Group has a very strong and leading franchise in retail, commercial and institution banking sector. Till 2013, the ANZ already operates among thirty countries and has a quickly and successful expansion in Asian emerging market such as China, Republic of Korea, Vietnams, Indonesia and so on (ANZ Annual Report 2013). In 21st century, Asia and Latin America are perceived as representatives of the emerging market, among them, China and Brazil are two most vital and attractive countries in emerging market. However, currently the ANZ only focus on their Asia market and has not expanded to Brazil.

The cultural expectation that fuels our desire to want more than we need in reality is definitely rooted in the vision of the American Dream. The idea that If you don’t work hard, then you pay the price for loosing out on your dream. It’s your fault for not fulfilling your dream, so you shouldn’t blame the system. People are caught up with impressing other people, it’s quite ridiculous to what extent one can go to raise their status in the society. You’ll see people who will use credit cards to shop for the most expensive items and technologies, so that they assimilate with the rest of the high tech , upgrading world. This way of life became the norm in our society that if you decide to live like a normal human being and manage your earning and spend only on essentials items, then you are viewed as someone low. It’s kind of like a caste system. The more material things your possess, the higher up the ladder you will be placed in the society. It doesn’t matter how you achieved your materials, all that matters is you own a big mansion, nice car, latest phone etc. If you are on top of the caste system, then you’ll be prestigious and honored for your achievements. Society’s grand expectations on every aspect of life leads many people to turn into credit cards. Using credit card helps you get to the top of the caste system and not jeopardize your dignity.

American Express has plans to establish some more companies in other parts of the world which compares with the recommendations offered for the next three years, since it is recommended that the organization should establish other branches in different areas with an aim of attracting a large market share. The recommendation of advertising also compare with that of American Express since they have a plan to identify online services to attract many customers. American Express also considers partnership with other organizations which will

In this case Alpen bank’s country manager Carle has to make a crucial decision whether or not they should go for the credit card business in Romania. The bank has to come up with a solid market strategy that can generate at least €5 million in profit within 2 years. Before bringing this business to the market the Bank has to analyze whether an opportunity exists for the launch of the credit card or not. After going to the analysis Carle sees that yes there is the opportunity for credit card business in this market because in 2006 total financial cards has grown by 35% and there was a lot of card

Credit cards became a severely important and reliable method of payment. Not only is it is extremely convenient but building good credit became a necessity. In 2011, credit cards were being used for over 22 billion transactions that consisted on living an average lifestyle valued at a projected 2.1 trillion dollars. Consumer involvements and outlooks toward credit cards, as revealed in user surveys, may be subjective by overall lucrative circumstances, clients who own monetary conditions; the involvements of friends, family members, and colleagues; enclose broad knowledge conveyed by media reports about the credit card market. Customers with a stable occupation and growing salaries, for example, may have

Not only for those seeking to retire, the business motivated economy has transfigured how one must live in order to live comfortably. Building credit through credit cards is not the only way in order for a buyer to appear credible. Yet in the quest for the optimal credit score people enter into debt. Considering and evaluating the risks and benefits to credit cards may contribute to opinions towards those flimsy pieces of plastic.

It allows the cardholder to pay for goods and services based on the holder's promise to pay for them later. However, credit card has become a lot more than just a payment card. Banks have also started issuing loan on the credit card based on the credit history of the borrower. These are primarily short term loans which are meant for small business. This a convenient option as the customer then need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the

In the global perspective, China UnionPay is a new entrant, however, CUP already has high competitive advantage due to their hold in China. (2) The Chinese policies that prevents the foreign banks or foreign corporation, like Visa and Mastercard to penetrate their market. (3) competitor's lower rates also pose a threat to the company due to consumer's preference to this. (4) there is also the complaints regarding the high rates of Visa and Mastercard which gives a bad image to the company. (5) There is also an increase in the competitors' market share, especially in CUP's case. (6) Product can also easily be substitutable from its competitors and (7) competitor has greater customer loyalty than Visa Inc. Lastly, (8) the competitor's much more flexible and cheaper conversion process than that of Visa

Yes – If Citibank is striving to reach its goal of achieving $100 million in earnings by 1990, introducing a credit card into the Asia-Pacific market would be an effective means of achieving this goal. The case for launching the card product can be made based on a few reasons. First, as can be seen in the information presented in Exhibit 4, many of the countries Citibank is considering launching in have fairly high projected growth rates (with some as high as 8 and 9 percent). Another reason that promotes the case for Citibank’s card launch is the fact that there is a fairly low penetration of credit cards in the existing markets, as can be seen in the data presented in exhibit 8 of the case. This is

Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit

Credit Card frauds have become very common in banking scenario. Fraud preventions are critical to continue the confidence of the credit card customers. As it is very important to hold the confidence of credit card customers, credit companies had started educating the customers regarding the wide varieties of these frauds. This paper briefly deals about the issues related to credit card, its evolution, various methods of usage and ways to minimize the risk of credit card frauds. Visa misrepresentation on a little scale frequently happens in restaurants or other administration commercial enterprises, where a tip is given. It is essential to check your credit card receipts with your announcements to guarantee that you were not